Homeowners Insurance for Your Condo

Posted January 22nd, 2010
by HomeownersInsurance.org Staff (no comments)

condoLiving in a condo is different from living in a traditional home. A condo gives you the worry-free lifestyle of apartment living combined with the peace of mind knowing that you’re not just throwing your rent away every month, that you’re making an investment that will, eventually, appreciate.

One of the ways that condo insurance differs from homeowners insurance is this: when you buy a condo, there’s already insurance on the building. When you buy the condo, you’re stuck with the insurance policy. You sign on to that policy. Once you buy the condo, you can talk with the other condo owners about changing that insurance, but you can’t just go out and do it by yourself.

Condo insurance is different from homeowners insurance in what it covers, too. In some cases, condo insurance will only cover common areas up to the walls of your unit. In other cases, it may cover your unit. It might have enough liability coverage, or it may not. You’ll have to look over the existing policy to know for sure, of course.

You don’t need to just deal with the coverage that the existing policy offers you, however. That’s just the minimum homeowners insurance you get with your condo. Instead, you can talk to the insurance provider about additional or optional coverage.

You can go with the same company that insures the condo, or you can go with another company. You may be able to save a few bucks, for example, by going to the company that already insures your car. On the other hand, you run the risk that there will ultimately be some finger pointing between the insurance companies should disaster strike.

With a condo, you also don’t need to purchase a year of insurance ahead. The policy is already in place. You pay for the insurance that your lender requires or additional insurance that you want, and you sign on the dotted line to close.

If you want to switch homeowners insurance companies, you may be able to do so if you talk to the other co-owners. In many cases, they’ll be fine with it. This is one of the downsides to living in a condo compared to living in a home, however: you have to put so many decisions in front of the other owners. And, in some cases, you’re stuck with what you have because of the owners’ association.

Photo via Bitman

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